Pervasip Corp (PVSP)

[Bjones2]

What an ignorant dope, LOL

Sad really, big mouth idiot, lazy cyber bully, LOL

What Is a Reverse Stock Split?
A reverse stock split is a measure taken by a public company to reduce its number of outstanding shares in the market. Existing shares are consolidated into fewer shares. This results in a higher stock price for the stock shares but has no immediate effect on the total value of the stock to the investor or the market capitalization of the stock.

For example, if a stock is trading at 50 cents on the market, and the company declares a two-for-one reverse stock split, an investor who owned 100 shares worth 50 cents would own 50 shares worth $1 each.

KEY TAKEAWAYS
A company performs a reverse stock split to boost its stock price by decreasing the number of shares outstanding.

A reverse stock split has no immediate effect on the company's value, as its market capitalization remains the same after it’s executed. However, it often leads to a drop in the stock's market price as investors see it as a sign of financial weakness.

This path is usually pursued to prevent a stock from being delisted or to improve a company's image and visibility.